A growing number of German consumers are ready to switch electricity providers, marking a significant shift in the country’s energy market. According to the latest Simon-Kucher Energy Study, more than one in three consumers (34%) are considering changing their electricity supplier. Among new customers, this number climbs to 48%, suggesting a rapidly intensifying trend toward greater market mobility.
The shift is especially visible in the growing interest in green energy. Traditional municipal utilities and local energy providers are losing ground, while eco-friendly suppliers are gaining traction. The study reveals that regional providers, despite their local presence and close customer relationships, have seen their market share fall to just 35% — a drop of 22% since 2022. In contrast, green energy providers have increased their share from 2% to 7% in a short period, signaling a strong consumer push for sustainable options.
Rising Prices and Sustainability Drive Change
The main reason for switching remains high electricity prices, cited by 47% of those planning to change providers. Yet sustainability is emerging as a more significant factor, particularly among younger consumers. One-third of people under 25 see climate protection as an important issue when choosing their provider. Furthermore, the adoption of alternative energy solutions is rising: 59% more homeowners than last year have installed technologies like heat pumps.
Michael Kässer, Partner in the Energy & Utilities division at Simon-Kucher, notes, “Sustainability is still a secondary factor, but it’s clearly gaining importance. While affordability is still the top priority, more people are actively considering green alternatives.”
The Lingering Effect of the Energy Crisis
Although the energy crisis has largely stabilized, its impact is still being felt. Over 70% of German consumers say they have experienced noticeable price hikes since the crisis began. “The price shock hasn’t gone away,” says Malte Trukenmüller, Senior Director at Simon-Kucher. “This continued pressure is pushing more people to leave their basic utility contracts in search of better deals.”
This growing discontent is putting pressure on providers to act. Trukenmüller warns that companies who fail to align with shifting customer expectations could lose their competitive edge: “We’re seeing major changes in the energy market. Providers need to play to their strengths now, or risk losing market share for good.”
Fixed Rates Over Dynamic Tariffs
Amid the uncertainty, customers are opting for security. Fixed-price tariffs are much more popular than dynamic ones, which fluctuate based on market conditions. Only 8% of consumers currently favor dynamic pricing, while 48% prefer the stability of fixed-rate plans.
“Customers want reliability,” says Trukenmüller. “Even though dynamic tariffs may become more relevant in the future, they haven’t yet gained traction. For now, fixed rates offer the peace of mind that many consumers are looking for.”
About the Study
The Simon-Kucher Energy Study was conducted in October 2024 in collaboration with independent research institute Appinio. The survey involved 1,000 participants across Germany and explored topics such as electricity usage, switching intentions, pricing perceptions, and attitudes toward sustainability.
Additional insights and high-resolution infographics are available upon request for media and partner organizations. The full results of the study will be published on simon-kucher.com in the coming weeks.
